Entrepreneurs trying to build big companies turn to equity investors to raise capital. If a company is an established ongoing concern, investors can look at cash flows, growth rates, customer retention, capital assets, leverage, and other hard metrics to determine whether to invest and how to value the company. An early-stage company has few if any hard metrics, however. Startups are often just emerging from the idea stage into market trials, and the minimum viable products and services they offer are being tested by beta customers.
This presents a challenge for the entrepreneur. What will convince angel and early-stage venture investors that what she is building is not only a feasible company but one that has the potential to generate a large return on investment, and maybe even become one of those rare unicorn companies that will make its investors rich? Read More >>